California Home Prices Top $900,000 as Sales Rise in August
California’s median home price reached $901,420 in August, marking a 1.6 percent monthly increase despite rising mortgage rates.
The statewide median home price in California reached $901,420 in August. This figure represents a 1.6 percent increase from the July level of $887,210. The price also exceeded the $900,000 threshold after dipping below it in the previous month. According to GN auto markets/housing: housing prices data, this marks the fourth consecutive annual gain in median prices.
Existing, single-family home sales totaled 269,620 on a seasonally adjusted annualized rate. This volume is up 2.4 percent from July and up 1.4 percent from August 2025. The data comes from the California Association of Realtors. Despite these gains, sales remain below the 300,000-unit benchmark for the 47th consecutive month.
Mortgage Rates Impact Demand
Thirty-year fixed mortgage rates averaged 6.67 percent in August. Since late August, rates have climbed above 7.0 percent. This borrowing cost approaches a 20-month high. High rates continue to pressure affordability for potential buyers.
Buyers remained active in August despite elevated costs. Year-to-date home sales are up 1.8 percent. However, the recent surge in rates may soften demand in the coming months. Economic uncertainty adds further headwinds to the market.
Price Metrics Show Modest Growth
The share of million-dollar home sales fell to 35.2 percent in August. This is a decline from 35.5 percent in July. The median price per square foot decreased 1.4 percent to $428. These metrics indicate that price growth is not driven by high-end sales.
Price appreciation remains modest across the state. The monthly gain outpaced the typical July-to-August increase of 1.2 percent. However, it stayed below the 10-year average of 2.2 percent. Underlying value gains are slowing as the market adjusts.
